Probate and Estate Administration

Question 1

Which nonprobate assets are included in an estate’s inventory?

Answer 1

Joint accounts, payable on death accounts, and Totten trusts.

Question 2

Even though select nonprobate assets may be included in the decedent’s inventory, these assets will not be included in the decedent’s probate estate unless:

Answer 2

1. The probate estate is insufficient to pay debts, taxes, and expenses of the administration; and
2. an action is brought against the surviving party within 2 years after the decedent’s death.

Question 3

Probate is…

Answer 3

the legal procedure by which a decedent’s estate is distributed.

Question 4

Which Virginia court has jurisdiction over probate matters?

Answer 4

The circuit court.

Question 5

Where is the venue for probate matters?

Answer 5

In the county or city where the decedent resided;

or (if none) the county or city where the decedent owned real property;

or (if none) the county or city where the decedent owned personal property.

Question 6

A missing person is presumed dead if they have been absent from Virginia (or heard from)…

Answer 6

for at least seven years.

Question 7

The fact that a person was exposed to a specific ______ may be a sufficient basis for presuming that the person died, even if seven years have not passed.

Answer 7

peril of death

Question 8

A person who was on board a ship or aircraft who dissapears at sea is presumed dead after…

Answer 8

6 months or a determination by a board of inquiry, whichever occurs first.

Question 9

If a will is not offered for probate within ______ after the testator’s death, a bona fide purchaser of real property from an heir or devisee under a will is protected.

Answer 9

one year.

Question 10

A personal representative of a will is an…

Answer 10

executor.

Question 11

A personal representative appointed by a court is an…

Answer 11

administrator.

Question 12

A nonresident individual may serve as a personal representative of a decedent’s estate, but they must…

Answer 12

appoint a resident agent for service of process or agree to allow the clerk of court to be served on their behalf.

Question 13

A corporation not authorized to do business in Virginia (can/cannot) serve as a personal representative.

Answer 13

Cannot

Question 14

What are the duties of the personal representative?

Answer 14

1. Marshalling the decedent’s assets;
2. Giving notice to creditors and paying valid claims;
3. Filing the decent’s tax forms;
4. Winding up the decedent’s affairs; and
5. Distributing the remaining assets according to the decedent’s will or the intestacy statutes.

MNTWD (money never talks when dead).

Question 15

How much must a personal representative’s bond be for?

Answer 15

Equal to the value of personal property in the estate.

[unless the decedent’s will waives the bonding requirement]

Question 16

At the time of qualification, a personal representative must…

Answer 16

furnish a list of the decedent’s heirs.

Question 17

Within four months of their appointment, a personal representative must…

Answer 17

file an inventory of the estate.

Question 18

Within 16 months following the date of qualification, the personal representative must…

Answer 18

file an accounting.

[and file annual accountings thereafter]

Question 19

A personal representative is entitled to be reimbursed for…

Answer 19

reasonable expenses and to recieve reasonable compensation.

Question 20

If a personal representative has the power to sell property, they are allowed a commission of..

Answer 20

5% on receipts for sale of property.

Question 21

If the assets in the estate are not sufficient to pay all debts and claims against the estate, creditor’s claims are paid in this order:

Answer 21

1. Expenses of administration;
2. Family allowance, exempt property, homestead allowance;
3. Funeral expenses up to $4,000;
4. Federal debts and taxes;
5. Medical expenses of the last illness;
6. Virginia debts and taxes;
7. Fiduciary debts;
8. Child support debts;
9. Local debts;
10. All other claims.

Question 22

If assets are insufficient to pay all creditors in a class…

Answer 22

those creditors are paid pro rata.

Question 23

If assets owned at death are not sufficient to pay all of a testator’s debts and also satisfy gifts, the source of payment of claims is as follows:

Answer 23

1. Personal property passing by intestacy;
2. Personal property in the residuary estate;
3. General legacies;
4. Specific and demonstrative bequests.

Question 24

Liens on specifically bequeathed property (are/are not) paid off by the estate.

Answer 24

Are NOT.

[unless directed otherwise by the will]

Question 25

As an exception to the general rule, if a lien was placed on specifically bequeathed property after the testator was incapacitated…

Answer 25

the beneficiary is entitled to exoneration of the lien.

Question 26

Under Virginia law, a small estate is…

Answer 26

valued at $50,000 or less and includes only personal property.

Question 27

What is the benefit of a small estate?

Answer 27

An informal affidavit procedure is used instead of a formal estate administration.

Question 28

To qualify as a nonresident executor in Virginia, the invidual must…

Answer 28

1. File a designation or a resident agent for service of process with the clerk of the circuit court; and
2. Have surety on their bond.

Question 29

A personal representative must exercise….

Answer 29

the highest fidelity and utmost good faith in dealing with the estate.